Audit 357850

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-003: Tri-Partite Board Composition Repeat Finding: No Major Program: AL#93.569 – Community Services Block Grant – Award Numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Special Tests and Provisions Condition: Less than 1/3 of the members of the board of directors of WMCA were representative of the public sector and less than 1/3 of the members of the board of directors of WMCA were representative of the private sector in accordance with Community Services Block Grant (CSBG) requirements. Criteria: The CSBG Act at 42 USC 9910(b), required that public organizations administer the CSBG program through a Tri-Partite board. Cause: WMCA had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Effect: Due to the above noted conditions, WMCA was not in compliance with this particular CSBG compliance requirement. Recommendation: We recommend WMCA recruit board members to comply with the tri-partite board composition requirement. Views of Responsible Officials: WMCA agrees with the audit finding and has written a corrective action plan.

Finding Number 2024-003: Tri-Partite Board Composition Repeat Finding: No Major Program: AL#93.569 – Community Services Block Grant – Award Numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Special Tests and Provisions Condition: Less than 1/3 of the members of the board of directors of WMCA were representative of the public sector and less than 1/3 of the members of the board of directors of WMCA were representative of the private sector in accordance with Community Services Block Grant (CSBG) requirements. Criteria: The CSBG Act at 42 USC 9910(b), required that public organizations administer the CSBG program through a Tri-Partite board. Cause: WMCA had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Effect: Due to the above noted conditions, WMCA was not in compliance with this particular CSBG compliance requirement. Recommendation: We recommend WMCA recruit board members to comply with the tri-partite board composition requirement. Views of Responsible Officials: WMCA agrees with the audit finding and has written a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance with Western Maine Community Action, Inc.’s major federal programs. Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Time Sheets Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of 80 payroll transactions there were 3 where the timesheet was not properly approved by the supervisor prior to payroll being processed. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Cause: The Organization does not have the proper review process in place to ensure that the timesheets are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of the hours allocated to the grants on the employee timesheets, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure timesheets are approved by supervisors prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-002: Approval of nonpayroll disbursements Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Approval of nonpayroll disbursements Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions. Criteria: Internal controls that provide for proper segregation of duties should be in place. Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed. Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged. Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures. View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.

Finding Number 2024-003: Tri-Partite Board Composition Repeat Finding: No Major Program: AL#93.569 – Community Services Block Grant – Award Numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Special Tests and Provisions Condition: Less than 1/3 of the members of the board of directors of WMCA were representative of the public sector and less than 1/3 of the members of the board of directors of WMCA were representative of the private sector in accordance with Community Services Block Grant (CSBG) requirements. Criteria: The CSBG Act at 42 USC 9910(b), required that public organizations administer the CSBG program through a Tri-Partite board. Cause: WMCA had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Effect: Due to the above noted conditions, WMCA was not in compliance with this particular CSBG compliance requirement. Recommendation: We recommend WMCA recruit board members to comply with the tri-partite board composition requirement. Views of Responsible Officials: WMCA agrees with the audit finding and has written a corrective action plan.

Finding Number 2024-003: Tri-Partite Board Composition Repeat Finding: No Major Program: AL#93.569 – Community Services Block Grant – Award Numbers: CFS-23-7009 and CFS-24-7009 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Special Tests and Provisions Condition: Less than 1/3 of the members of the board of directors of WMCA were representative of the public sector and less than 1/3 of the members of the board of directors of WMCA were representative of the private sector in accordance with Community Services Block Grant (CSBG) requirements. Criteria: The CSBG Act at 42 USC 9910(b), required that public organizations administer the CSBG program through a Tri-Partite board. Cause: WMCA had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Effect: Due to the above noted conditions, WMCA was not in compliance with this particular CSBG compliance requirement. Recommendation: We recommend WMCA recruit board members to comply with the tri-partite board composition requirement. Views of Responsible Officials: WMCA agrees with the audit finding and has written a corrective action plan.